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An economy has a fixed price level, no imports, and no income taxes. MPC is 0.75 and real GDP is $300 billion. Businesses increase investment
An economy has a fixed price level, no imports, and no income taxes. MPC is 0.75 and real GDP is $300 billion. Businesses increase investment by $20 billion. The new level of real GDP is
a.$320 billion.
b.$20 billion.
c.$5 billion.
d.$380 billion.
e.$300 billion.
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